We are at the brink of the largest intergenerational wealth
transfer in history. In the United States alone, it is estimated
that over the next three decades, there will be a transfer of
wealth from the Baby Boomer generation to their heirs that
surpasses $30 trillion. This wealth transfer process is certainly
underway on Long Island and has been noticeably accelerated by a
number of changes in the tax act that was passed by Congress last
December.
The Tax Cuts and Jobs Act of 2017 increased the federal gift and
estate tax exemption to over $11,000,000 per individual or over
$22,000,000 combined for a married couple. Compared to the previous
gift and estate tax exemption of $5,490,000 per individual, the act
provides for an unprecedented exemption increase. Individuals who
have delayed the estate planning and business succession process
now have more attractive planning opportunities. With this said,
individuals must still be mindful of New York State estate
taxes.
